development_ultra - copy.ppt
TRANSCRIPT
DEVELOPMENT OF ULTRA MEGA POWER PROJECTS
Shyam WadheraDirector (Projects)
Power Finance Corporation Ltd.11th May, 2006
THE CONCEPT: DEVELOPMENT OF LARGE GENERATION PROJECTS THROUGH COMPETITIVE BIDDING Setting up of large projects of 4000 MW at a single location:
ensuring economies of scale
Utilisation of super critical technology: ensuring higher efficiency and lower CO2 emissions
Award of projects to developer through tariff based competitive bidding : ensuring cheaper power
THE APPROACH
Guidelines for determination of tariff through bidding process were issued on 19th January, 2005 under Section 63 of the Electricity Act, 2003. These provide for procurement of power by Distribution Licensees through competitive bidding
Separate SPVs for each project to undertake project development activities including bid process management on behalf of procurers
TECHNICAL FEATURES
Utilisation of higher efficiency super critical technology with unit size of 800 MW
Station capacity of about 4000 MW (5x800 MW)
Flexibility re: unit size to be permitted, subject to meeting thermal efficiency requirements
SITE SELECTION Site selection by CEA taking into consideration availability
of fuel, land and water etc. 5 suitable locations identified based on preliminary scrutiny
by CEA of a number of potential sites available in the country : Two pithead locations based on domestic coal.
Sasan in MP Akaltara in Chhattisgarh
Three coastal locations based on imported coal. Mundra in Gujarat Girye in Maharashtra Tadri in Karnataka
One additional pithead site in Orissa and one coastal site in Andhra Pradesh are also under consideration
LEARNING FROM PAST EXPERIENCE IPP experience in the past highlights critical importance
of availability of Reliable fuel supply Environmental clearances Power purchase agreement with payment security for
achieving financial closure Shell Companies to obtain statutory clearances and to
tie-up inputs
THE SHELL COMPANY CONCEPT
PFC identified as the nodal agency Shell Companies set up as wholly owned subsidiaries of
PFC. Each Company to work independently to reach a stage
where major tie-ups, statutory clearances and linkages are in place.
Selection of developer through tariff based ICB. Shell companies will then be transferred to the successful
bidders for execution of projects.
ROLE OF MINISTRY OF POWER• Ministry of Power to be facilitator• Co-ordination with concerned Ministries/ Agencies and
State Govts. for ensuring: Coal block allotment/ coal linkage Environment/ forest clearances Facilitate acquisition of land Required support from State Govt. & its agencies on various
issues Financial closure by Financial Institutions To facilitate PPA and proper payment security mechanism
with State Govt./ State utilities Monitoring the progress of shell companies w.r.t
predetermined timelines
ROLE OF SHELL COMPANIES Shell Companies to take action for:
Appointment of Consultants to undertake preparation of Project Report
Initiate land acquisition proceedings Obtain coal linkages/ allocation of captive coal blocks for pit-
head projects. Allocation of water by the State Govt. for pit-head locations Approval for use of seawater from Maritime Board/ other
Govt. Agencies for coastal locations Appointment of Consultants for International Competitive
Bidding (ICB), document preparation & evaluation.
Contd..
ROLE OF SHELL COMPANIES ….Contd.
Obtain various approvals and statutory clearances. Tie up for off-take/ sale of power as per provisions of Section
63 of EA 2003. Initiate action for development of the power evacuation
system and undertake system studies considering the addition of capacity from these projects
BIDDING PROCESS For the purpose of selection of a developer, a two stage
selection process has been adopted. The first stage of bidding will involve Request For Qualification
(RFQ) containing qualifying criteria for selection of bidders to participate in the second stage.
The second stage of bidding will invite Request For Proposals (RFP) from the qualified bidders which will further be evaluated by the SPVs with help of appointed consultants.
The RfQ and RfP documents will conform to Competitive Bidding Guidelines of the Govt. of India
TIME SCHEDULE FOR FIRST TWO PROJECTS
Activity Date
Notice for EoI for Sasan/ Mundra 31-1-06/ 1-2-06
Submission of EoI for Sasan/ Mundra 28-Feb-2006
Issue of RFQ Documents for Sasan/ Mundra
31-Mar-2006
Submission of Bids (RFQ) 01-June-2006
Issue of RFP Documents 15-June-2006
Submission of Bids (RFP) 15-Nov-2006
Selection of Developer/ Transfer of SPV 31-Dec-2006
ACTIONS TAKEN BY SHELL COMPANIES Issuance of EOI:
Sasan (MP) 31-Jan-2006Mundra (Gujarat) 01-Feb-2006Girye (Maharashtra) 28-Feb-2006Tadri (Karnataka) 10-Mar-2006
Bidders’ Conference:Sasan & Mundra at New Delhi 21-Feb-2006Girye at Mumbai 17-Apr-2006
Site visit for Bidders Sasan and Mundra sites 22nd to 24th Feb 2006
The Conference attended by about 35 companies including
Overseas Companies and representative of FIs/ Banks.Contd..
ACTIONS TAKEN BY SHELL COMPANIES….contd
Technical Consultants appointed for preparation of Project Reports for 5 projects
Studies started by the consultants for Sasan and Mundra Projects.
Consultant appointed for preparation of bidding documents and to advise regarding bid process management for the tariff based competitive bidding for Sasan and Mundra projects
SCOPE OF TECHNICAL CONSULTANCY
Scope of Work: Topographical Survey Geo Technical Study Area drainage Study EIA Study Socio Economic survey Hydrographic Study (for coastal projects)
Completion Schedule: 15-6-06 for Sasan & Mundra
Scope of Work: To prepare documents for Request for Qualification To assist & advise in carrying out detailed evaluation of RFQ To prepare documents for Request for Proposal (RFP) To participate in all Bidders Conference To Prepare bid evaluation Financial models to carry out analysis of
Bid including sensitivity analysis To assist & advise in detailed evaluation of RFP received To analyse project risks and advise on risk allocation matrix To assist & advise in selection of successful developers and
participate in negotiations.
SCOPE OF BIDDING CONSULTANCY
GOVERNMENT SUPPORT : Support of State Govt:Periodic meetings by Ministry of Power with Senior State Govt. Officials to obtain their support on issues relating to land, water,environment issues
Support of Financial Institutions:Meeting taken by Secretary (Power) with Heads of FinancialInstitutions on 6-01-2006
Support of Industry:Meeting taken by Hon’ble Finance Minister with Industry Leaders on 13-01-2006
GOVERNMENT SUPPORT : ….Contd.
Contd..
Support of Govt. of India:Development of Ultra Mega Power Projects discussed in Meeting of Energy Co-ordination Committee Chaired by Hon’ble Prime Minister on 10-02-2006
Purchase of Power:Meeting taken by Secretary (Power) with Principal Secretaries and Utility Chiefs of purchasing states on 16-02-2006
Transparent Bidding Process:Bidders’ Conference for Sasan and Mundra projects held at New Delhi on 21-02-2006
Broad Qualifying Requirements discussed and consensus evolved
POWER OFF-TAKES.No. State\ Project -> Sasan (MP) Mundra(Gujarat) Girye(Mah.) Karnataka
1 Delhi 500 - - -
2 Uttar Pradesh 500 300 - -
3 Uttaranchal 100 - - -
4 Punjab 600 500 - -
5 Rajasthan 400 400 500 300
6 Haryana 450 400 - -7 Madhya Pradesh 1200 - 500 -
8 Chattisgarh 250 - 500 -
9 Guajarat - 1600 - -10 Maharashtra - 800 2000 100011 Karnataka - - 500 150012 Tamil Nadu - - - 1000
13 Kerala - - - 20014 Andhara Pradesh - - - -
TOTAL 4000 4000 4000 4000
PAYMENT SECURITY MECHANISM
As condition in PPA Letter of credit (LC) by distribution utilities Escrow on the receivables of distribution utilities Direct supply to HT consumers in the unlikely event of
default as per provisions of the Electricity Act 2003 to be accepted upfront
Meeting with Secretary (Coal) on 01.03.2006 regarding allocation of captive coal blocks
Meeting with Secretary (Environment) on 09.03.2006 to emphasise fast track environmental clearance for the Ultra Mega Power Projects
Presentation given to Dy. Chairman, Planning Commission on 27.03.2006
Meeting with Bidders on 8.4.06 at New Delhi for clarification of RfQ issues
Presentation to Expert Committee (Thermal) of MoEF on 20.04.2006
A presentation to Chairman and Members, CERC on 26.04.06
INVOLVEMENT OF OTHER STAKEHOLDERS
Contd..
…..and the Process Continues
THANK YOU